any IR35 compliance expert

[sdyson31]

I have just received my contract and want this to be reviewed. If my contract is inside IR35 then its not worth doing it , any advise or recommendations.

[ewenm]

I think IPSE offer a contract review service.

[sdyson31]

Do i still need to worry about IR35 compliance if the contract is b/w client and agency? I will get paid via agency.

[ewenm]

sdyson31 said:

Do i still need to worry about IR35 compliance if the contract is b/w client and agency? I will get paid via agency.

Are you PAYE to the agency then?

[sdyson31]

don't know really....

I will setup a Ltd company and get paid through them. Agency did offer me to use their umbrella company but i refused, they don't mind if i setup a ltd or go with different umbrella company.

[ewenm]

The contract between your limited company and the agency will be the one to have checked for IR35 compliance. Of course, in a HMRC investigation, the actual working behaviour will be looked into. The contract compliance is NOT the only thing to consider.

[skahigh]

Weird, just today I sent a contract to QDOS for review.

I'm an IPSE member but QDOS is cheaper and I found a code online to take an extra 7.5% off, think it was MOBI14.

[Alex]

sdyson31 said:

I have just received my contract and want this to be reviewed. If my contract is inside IR35 then its not worth doing it , any advise or recommendations.

I had my last contract reviewed by QDOS. They recommended some changes, which I made and agreed with the client.

Most agency contracts are "IR35 friendly", but as has been stated, the contract is not the only factor. In fact, no-one knows for sure how to determine IR35 status including HMRC. It's a clusterfk.

[deckster]

sdyson31 said:

don't know really....

I will setup a Ltd company and get paid through them. Agency did offer me to use their umbrella company but i refused, they don't mind if i setup a ltd or go with different umbrella company.

Spend half a day on www.contractoruk.com - there is everything you could ever want to know on there and believe me, knowing whether you are PAYE, Ltd company, umbrella, or some dodgy loan scheme run out of the Caymans is very very important to you right now, even if you don't know that it is.

BTW if you don't know whether you are IR35 caught or not, the answer is almost certainly 'yes you are', regardless of what the contract says. The contract is almost irrelevant when compared to what actually happens when you are on-site, and unless it is made very clear up-front on things like direction and control, mutuality of obligation, and the reality of being able to substitute then the chances are very low that your working practices will turn out to be favourable to being outside of IR35.

[sdyson31]

Who needs to do this test? My Ltd company or agency?

http://www.contractorcalculator.co.uk/ir35_busines...

Agency has mentioned that this contract will be IR35 compliance but you can't just take their words. What is the best thing for me to do at this stage?

[Fastpedeller]

I agree with the last comment - It would seem HMRC makes up the 'rules' which haven't necessarily been tried in law. One thing I found (when I was last working like this 4 years ago), was that an 'umbrella' or other organisation doesn't appear to have any more legitimacy than doing all the paperwork yourself, but charges you (understandably) for their services. It may be better to do it yourself and at least you have more funds if required to pay NI bill, and are in control and (hopefully) understand the figures.
One place I worked a 'guy of floor3' was recommended as having set up an umbrella etc - he ran off with lots of people's money!

[Alex]

If you work through an umbrella, you are effectively working inside IR35. Umbrella companies were very efficient at reducing tax by maximising your expenses, but Gideon has put a stop to that if you are inside IR35, so it is even more important to make sure you are outside.

[sdyson31]

Which contract needs to be reviewed by qdos? Contract b/w client and agency or contract b/w my ltd company and agency?

Agency is offering me PAYE option, is it worth looking at?

[Alex]

sdyson31 said:

Which contract needs to be reviewed by qdos? Contract b/w client and agency or contract b/w my ltd company and agency?

Agency is offering me PAYE option, is it worth looking at?

It is the contract between your Ltd co. and the agent. You are not entitled to see the contract between the agency and the client (although your IR35 status might depend on it. I said it was a clusterfk).

Going PAYE would be much simpler, but you will pay more tax. If it's a short contract it might not be worth the bother of going the Ltd co. route.

[Eric Mc]

Alex said:

It is the contract between your Ltd co. and the agent. You are not entitled to see the contract between the agency and the client (although your IR35 status might depend on it. I said it was a clusterfk).

Read the Dragonfly Ltd case. That was part of the issue there.

[sdyson31]

If i can't see the contract b/w client and agency then which contract needs to reviewed by Qdos? contract b/w Ltd and agency?

So via PAYE will i get 28 paid holidays? That is what the agency has told me.

[UpTheIron]

What rate are you being paid?
How long do you plan to contract for?
What legitimate business expenses will you incur?
What is the role... will you be acting like a permie or is it clear you are an external consultant? How is that differentiated?
Do you want an easy life, even if it costs you in tax?

... will all help us provide some guidance

[UpTheIron]

sdyson31 said:

So via PAYE will i get 28 paid holidays? That is what the agency has told me.

Yes, by law. However this will be funded out of money the client is paying, it won't be "free". Think of being PAYE for an agency as like having a permanent job but with no perks, but still getting the relatively poor salary.

Why are you considering contracting?

[sdyson31]

UpTheIron said:

What rate are you being paid?
How long do you plan to contract for?
What legitimate business expenses will you incur?
What is the role... will you be acting like a permie or is it clear you are an external consultant? How is that differentiated?
Do you want an easy life, even if it costs you in tax?

... will all help us provide some guidance

What rate are you being paid?
£250 per day via Umbrella and £275 via Ltd.

How long do you plan to contract for? I am planning to do contract for longer period of time, this would be my first contract, 3 months rolling contract and might last for an year but doesn't always happen.

What legitimate business expenses will you incur? Just travel expenses around £10 a day.

What is the role... will you be acting like a permie or is it clear you are an external consultant? How is that differentiated?
Role is for developing in house software, i will working b/w certain hours 9-5 just 5 days a week. I believe i will an external consultant as i will be contracting through an agency. Agency emailed me the contract yesterday which doesn't contain substitution, Helper, termination and other clauses and when i try to discussed with him, he said he has got contracts in different formats, i believe he doesn't know whats he doing. Its been a very easy ride for him as most of the contracts don't care about IR35 and he doesn't seem very happy with me as i am asking a lot of questions on contract.

Do you want an easy life, even if it costs you in tax? If you meant Umbrella route then its not worth doing a contract.

[deckster]

sdyson31 said:

Role is for developing in house software, i will working b/w certain hours 9-5 just 5 days a week.

Regardless of how you are paid, there isn't a cats chance in hell of you being outside IR35 based on what you've said.

Have you checked out the newbie section on contractoruk yet? It goes into considerable detail on all these questions.